History of the MMK Steel Group
MMK is one of the leading steelmakers in the world. In 2018 the firm produced ~13 million tonnes of crude steel.
The timeline below covers the history of the firm.
- 1932: First blast furnace blown-in; first pig iron smelted 1st February.
- 1941: First armour plate steel is produced at the Works.
- 1975: MMK is producing ~15 mt crude steel per annum.
- 1992: Privatization of the Magnitogorsk Metallurgical Kombinat.
- 2007: MMK conducts IPO followed by listing on London Stock Exchange.
- 2007: Construction of heavy plate Mill 5000 commences.
- 2007: Buys 26% equity stake in OAO Bashmetallopttorg.
- 2009: Acquires 'Profit' scrap collection business.
- 2009: Gets control of ~83% of coal concentrate producer Belon.
- 2011: Commissioning of MMK Atakas in Turkey.
- 2012: Sells freight business MMK-Trans to Globaltrans.
- 2012: Abandons acquisition of ore miner Flinders Mines.
- 2013: MMK Metalurji workforce goes on strike.
- 2017: Acquires Lysva Metallurgical Company.
- 2019: Joins up with Deloitte to digitalise iron and steel operations.
- Geological surveys of Magnitnaya Mountain started in 1828. By the late 19th century, Magnitnaya village had several streets and over 100 households. By the early 20th century, several tens of thousands of tonnes of iron ore were being mined each year.
- 1932 witnessed the birth of MMK. With a railroad established in 1929, a town was slowly developing right next to the Works. Within 2 years, Stanitsa Magnitnaya would have one of the first cinemas in the Urals.
- 1934: Establishment of mining and metallurgy institute in Magnitnaya.
- Bashmetallopttorg, located in the city of Ufa in the Republic of Bashkortostan, is a metal warehouse business. Purpose of this acquisition was for MMK to expand its service centre network.
- 2010: The state-of-the-art heavy plate mill supplied by SMS Group, was commissioned in 2010. Mill 5000 comprises a continuous slab caster #6, and secondary refining in an oxygen-converter plant. Mill 5000 itself being designed for production of high-quality heavy plate up to X120 grade for the oil and gas, shipbuilding, bridge-building and machinery sectors.
- 2009: Profit was one of Russia's largest scrap collection and processing firms. The acquistion was made in order to strengthen MMK's supply of raw materials. ZAO Profit purchases scrap in 64 regions of Russia, with more than 40 percent of its purchases coming from the Chelyabinsk, Moscow, Nizhniy Novgorod and Samara regions and the Republics of Bashkortostan and Tatarstan.
- 2011: Construction of the 2.3 mt / year MMK-Atakas plant, located near Iskerendun, cost $2.7 billion. The facility, supplied by Danieli, comprised a hot strip mill, a 750 kt / year cold rolling mill, a 900 kt / year hot dip galvanising plant, and a 400 kt capacity organic coating line. THis investment was a joint venture between MMK and the Turkish Atakas Group. A service center was commissioned in the town of Iskenderun, some years later. This was designed to cut hot-rolled coils, slit and cut cold-rolled coils and coated steel, and to package these products for sale.
- 2011 also saw the MMK buyout of its Atakas joint venture partner. The 100% MMK subsidiary as at this point renamed MMK Metalurji Sanayi Ticaret Ve Liman Isletmeciligi.
- 2012: MMK-Trans was the captive freight operator of the MMK Group. Sale of 100% of MMK-Trans to Globaltrans (including net debt and working capital of approximately USD $110 million) was for a consideration of USD $225 million.
- 2012: Magnitogorsk Iron & Steel had signed a $567m agreement to acquire Australian iron ore miner Flinders Mines, but this agreement expired before MMK completed the transaction, takeover being blocked by a minority MMK shareholder. [Under Russian law, a minority shareholder was at that time allowed to initiate court proceedings if they considered that a transaction might cause the company financial hardship].
- 2013: The strike, organised by Turkish Trade Union Organization Celik-Is, lasted just a matter of weeks. Salaries and benefits were the main issue in the dispute.
- 2017: At the time of the acquisition, the Lysva Metallurgical Company (LMC Group) was Russia's only producer of electrogalvanised coated products.
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